AGENCY: Taxation and Revenue DepartmentDESCRIPTION: Tax credits for eligible expenses related to qualified research at a New Mexico facility to provide a favorable tax climate for technology based businesses engaging in research, development and experimentation to promote increased employments and higher wages.PROGRAM/LOAN STRUCTURE:
Technology Jobs Tax Credit – Part I:
• Credit equal to 4% of eligible expenses;
• Eligible expenses include payroll, depletable land, rent, buildings, equipment, computer software and upgrades, technical books and manuals, test materials, consultants and sub-contractors performing work in New Mexico;
• Credit may be taken against gross receipts tax, compensating tax or state payroll tax;
• Credit may be carried forward; and
• Credit is doubled for investments by companies located in rural New Mexico.
Technology Jobs Tax Credit – Part II:
• Credite qual to 4% of eligible expenses;
• Credit requires tax payer to increase base payroll expense by $75,000 for every $1 million of investment for which the credit is claimed;
• Credit may be taken against state income tax;
• Credit may be carried forward; and
• Creditis doubled for investments by companies located in rural NewMexico.QUALIFICATION CRITERIA/COMMENTS:
• Credits not available for:
• Investments in property owned by the city or county in conjunction with an Industrial Revenue Bond;
• Investments that have received a credit under the Manufacturing Investment Credit Act;
• National laboratories; and
• Amounts reimbursed by unrelated persons (contractresearch).
• Definition of qualified research:
• Under taken for the purpose of discovering information which is technical in nature, and the application of which is intended to be useful in the development of a new or improved business component for the taxpayer; and
• Substantially all activities which constitute elements of a process of experimentation related to a new or improved function, performance, reliability or quality, but not related to style, taste, and cosmetic or seasonal design factors.
• Rural areas are those areas in New Mexico other than the incorporated boundaries of Albuquerque, Las Cruces, Santa Fe or Rio Rancho.
• See 7-9F-1 through 7-9F-12 NMSA.
• Visit the Taxation and Revenue Department homepage at http://www.state.nm.us/tax/home.htm or find paperwork and applications at http://www.state.nm.us/tax/BizPge.htm.
• Call the office of the Secretary at (505) 827-0951.